U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected

Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by renewiltord on Thursday October 26, 2023 @12:11PM (#38027645)

If you make $100k and your grocery bill is $10k a year, a 5% increase in groceries (to $10.5k) only needs an 0.5% increase in salary to offset.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by deltarholamda on Thursday October 26, 2023 @04:31PM (#38031330)

Why stop at $100K? Why not $250K? $500K?

If you're in the top 1-2% of income earners you feel things differently, this is understood.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by renewiltord on Thursday October 26, 2023 @05:01PM (#38031650)

Ah I see. Then let's do the median. That's $74580 from the census. So your income has to rise by 0.67% to compensate for a 5% rise in grocery prices.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by deltarholamda on Thursday October 26, 2023 @06:42PM (#38032597)

For one, grocery prices have risen by more than 5%. (My own experience is more like 30-40% just in the past year.) For two, grocery prices are one metric among many in the cost of living, e.g. you also have to account for housing prices, energy prices, etc. And, of course, wages are not rising commensurate with the overall CoL, they have been essentially flat for decades.

So while your math is good, it's not meaningful. I find it very weird the lengths people will go to in trying to make one-off metrics reflect a different reality than what is very clear from people's experiences.

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